Ethereum News Today: The Institutional Phase of Ethereum: SharpLink Allocates $200M in ETH to Access DeFi Returns

On October 28, 2025,

, Inc. (NASDAQ: SBET) revealed a significant $200 million (ETH) allocation on Consensys' , a zkEVM Layer 2 network, aiming to maximize decentralized finance (DeFi) returns and broaden institutional involvement in blockchain-driven capital markets. This multi-year initiative utilizes ether.fi and EigenCloud for both staking and restaking, with Anchorage Digital Bank providing secure asset custody. Through this move, becomes one of the largest publicly traded companies to actively deploy ETH for improved onchain yields, marking a shift toward DeFi strategies tailored for institutions.

This deployment merges native Ethereum staking incentives with EigenCloud’s restaking platform, which supports autonomous verifiable services (AVSs) and new AI-related tasks. By channeling ETH through Linea’s scalable framework, SharpLink seeks to benefit from reduced transaction costs, quicker settlements, and seamless integration with the wider Ethereum ecosystem. The company also stands to gain from direct rewards offered by Linea and ether.fi, further diversifying its sources of yield.

Joseph Chalom, Co-CEO of SharpLink, highlighted that the project aligns with institutional standards for risk management. “This initiative allows us to tap into Ethereum’s leading staking, restaking, and DeFi opportunities while upholding the protections our shareholders expect,” he commented, praising Linea’s strengths in composability and security. The partnership also reinforces SharpLink’s commitment to advancing Ethereum adoption, especially in programmable capital markets and tokenized equity solutions.

Joseph Lubin, founder of Consensys and co-founder of Ethereum, spoke about the broader impact of the move. “Linea was designed so that every ETH deployment increases its productivity,” he explained, describing the collaboration as a blueprint for institutional onchain activity. Sreeram Kannan of EigenCloud added that this step accelerates the development of a “verifiable economy,” where ETH underpins AI services and trustless infrastructure.

Anchorage Digital, responsible for safeguarding SharpLink’s ETH, stressed the significance of regulatory adherence. “Innovation and compliance should progress together,” said Nathan McCauley, CEO and co-founder of Anchorage Digital, emphasizing the company’s role in connecting traditional finance with crypto-native systems.

This action highlights a rising trend of institutions adopting Layer 2 technologies to boost capital efficiency. By allocating ETH to Linea, SharpLink joins other enterprises looking to generate returns from digital assets while supporting Ethereum’s security and decentralization. The deployment also supports EigenLayer’s mission to extend Ethereum’s capabilities beyond its foundational layer, allowing ETH to secure a variety of applications, from DeFi to artificial intelligence.

SharpLink’s approach does carry risks, including market fluctuations, potential smart contract issues, and regulatory changes that could affect yields. Nevertheless, the company’s long-term strategy and institutional safeguards are designed to address these risks. If successful, this initiative could encourage more institutions to pursue similar paths, further solidifying Ethereum’s place in the evolving financial landscape.

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